What happens if I miss the deadline for my Ontario corporation's annual return?

If an Ontario corporation does not file its annual return on time, the province can note the corporation in default. A corporation in default loses the right to use the Ontario courts to enforce contracts, which can be a serious practical problem if you ever need to sue a customer or vendor.

If the corporation remains in non-compliance for an extended period, the government may take steps to dissolve it under the Business Corporations Act (Ontario). Dissolution means the corporation legally ceases to exist, and its assets can become property of the Crown in certain circumstances.

The good news is that Ontario allows dissolved corporations to apply for revival if the dissolution was administrative (for non-filing) rather than voluntary. Revival restores the corporation as if it had never been dissolved, but the process requires filing outstanding returns and paying any applicable fees. Acting quickly limits the complications. To avoid default in the first place, set a calendar reminder linked to your fiscal year-end and confirm each year that the annual return was filed through CRA.